Selling insurance can be challenging, but you'll have an easier time finding success if you avoid common mistakes that cause agents and brokers to lose out to the competition.
Consumers have so many choices today that even a small error, such as not providing requested information promptly, can cost you a sale. Whether you're selling online, over the phone, or face to face, errors can be avoided.
Here are four common sales mistakes:
1. Pushing too hard to make a sale
If you dive into your insurance sales pitch without taking the time for small talk, you may scare your client away. Whether meeting in person or chatting on the phone, take a little time to get to know your client and his or her needs.
Clients want to feel that you have their best interests at heart. That can't happen unless you're willing to talk about things other than your products, according to the Aged Leads Store.
What are your clients' favorite pastimes? Do they have children? Where did they grow up? Finding out will be well worth your time.
2. Not following through
When leads are generated, whether online or through referrals, you should contact consumers promptly before they take their business elsewhere. Consumers have many choices. If you drop the ball, someone else will be there to pick it up.
An Insurance Industry Online Buyer Experiences study by Velocify examined responses to requests for quotes from 25 direct, captive, and independent insurance carriers. It found that many insurers weren't responsive to prospective buyers. To put it into perspective, 17% of consumers received phone calls and nothing else. Twenty-two percent received only emails. Only 44% received both phone calls and emails.
And 17% of the online requests for quotes in the study didn't receive a response of any kind.
Business News Daily reports that a study conducted by the Massachusetts Institute of Technology found that the odds of business leads becoming sales were 21 times higher if the leads were contacted within five minutes or less.
You can avoid losing sales by making it a priority to see that contacts initiated by consumers are handled promptly.
3. Taking an "all or nothing" approach
Advertising often offers potential clients two choices, Business News Daily reports: a personal meeting or a phone call.
Unfortunately, many people who surf the web aren't ready to make that level of commitment right away. Leads that could have become sales at a later date aren't captured.
An alternative that will lead to successful selling is to offer an option to consumers that doesn't require an immediate commitment, such as allowing them to download a free report in exchange for their contact information. Offering useful information about your products can be the first step toward generating a sale.
4. Relying too heavily on emails
Email can help you find prospects, but it's not an effective way to build relationships that lead to sales, according to Spiro Technologies, Inc.
Consumers receive so many emails that your own may be overlooked. There are thousands of voices on the Internet that are asking to be heard. Using email may be easier than making phone calls, but it's also less personal.
You can resolve this by setting aside time for phone calls. There's no substitute for speaking with someone if you want to make a meaningful connection.
According to a report by Salesforce, phone calls capture the attention of sales prospects more quickly than emails. Also, phone calls allow you to ask questions and then tailor your sales pitch to the needs of each consumer. When sending emails, you're forced to guess what the consumer's needs are.
Remember: Keep the customer's needs in mind!You can avoid these four sales mistakes by always keeping the customer's needs in mind. Consumers appreciate agents and brokers who help them make wise and informed insurance decisions.